The nation’s “most aggressive” upscale mall developer has stalled on its planned project in south Forsyth County — a sign metro Atlanta likely won’t get a new regional mall in the next five years.

Around 2008, Michigan-based Taubman Centers Inc. (NYSE: TCO) got approval for a $1 billion mixed-use development on a 164-acre site at Georgia 400 and McFarland Road. The project was proposed to have more than 1 million square feet of retail, including a luxury mall with around three anchor stores. It was set to open in phases beginning in 2011, but construction has yet to start.

“We have heard nothing about them even pursuing the project,” said Mark Toro, managing partner of North American Properties. North American is the company developing the $600 million mixed-use project Avalon, which will offer upscale dining and shopping two exits south onGa. 400 from the Taubman site.

“In the 400 corridor with the addition of Avalon, I find it unlikely that you will see a large-scale development in the near future,” said John Bemis, Atlanta retail market lead for Jones Lang LaSalle Inc. “I think with today’s economy and the population growth patterns, that corridor is not on fire like it was in 2007, 2008. It’s not where it was five years ago.”

That’s because while retail is showing signs of improvement in Atlanta — sales are up and there’s net absorption of vacancy — the market still has considerable ground to make up.

Existing malls in response to rising e-commerce sales have had to adjust to become “more centers of the community,” Bemis said. For example, Phipps Plaza brought in Legoland to attract more shoppers.

Suburban malls that have failed to adjust their merchandise mix to meet the changing realities of tenants and their customer base have run into debt issues, including Gwinnett Place and the Mall at Stonecrest.

But, Taubman contends it’s still pursuing its Georgia development, which would be its first foray into the state. In fact, it’s listed as a “current project” on the company’s website.

“We are still working on it but have nothing more definitive to share at this time,” Karen MacDonald, spokeswoman for Taubman, said in a March 5 email to Atlanta Business Chronicle.

Bobby Taubman, CEO and chairman of the company, said last year in a call to analysts that “hopefully one day we will be able to put the project together.”

Taubman added that the project has its zoning and is approved for about 4 million square feet of residential, office, retail and hotel space.

“It’s a great site in a great location, along Georgia Route 400,” Taubman said in the April 2012 call. “It’s been the growth area of the market, obviously up until the downturn. There are number of new housing projects that are being thought about again along that corridor, and over time, we think it’s a great site.”

Last year, Taubman opened City Creek Center in Salt Lake City. The 700,000-square-foot shopping center, anchored by Macy’s and Nordstrom, was the only regional shopping center scheduled to open in 2012, according to the International Council of Shopping Centers.

Taubman said it was the first enclosed regional mall to open in the United States in six years (although it features a retractable glass roof).

Taubman is “the most aggressive ground-up developer at this time,” Bemis said.

But, he said, while nationally new regional malls will be built, it’s “very unlikely” a new one could come to metro Atlanta in the next five years.

One reason is most department stores aren’t in expansion mode, Toro said. “There doesn’t seem to be an appetite for growth.”

Instead, many department stores are revamping existing stores.

For example, in Atlanta, the women’s designer floors at Saks Fifth Avenue at Phipps Plaza will be renovated this year, according to Saks Inc.’s Feb. 26 call with analysts. Saks Inc. (NYSE: SKS) is the New York operator of Saks Fifth Avenue stores.

“Going forward, we will continue to focus on maximizing the productivity of our most productive stores,” Ronald Frasch, president and chief merchandising officer of Saks Inc., said to analysts.

That’s because sales and earnings for the company were “below our initial expectations as continued macroeconomic concerns, election and fiscal cliff distractions, and Hurricane Sandy weighed on our results, particularly in the second half of the year,” said Stephen Sadove, chairman and CEO, in a statement.

Other department stores, such as Macy’s, are trying new store formats to compete with the Internet.

“Macy’s a year and a half ago experimented with putting distribution and warehouses in their retail locations starting with three or four,” Ruth Coan, principal of The Shopping Center Group, said during a February meeting of CREW (Commercial Real Estate Women) Atlanta. “Now they are up to well over 150. They are bringing the product closer to the purchaser. They are using their existing spaces to provide not only the retail experience but also distribution to the point of same-day delivery.

“I think that’s a very clever retailer thinking it through very carefully.”

Amy Wenk covers hospitality, retail and restaurants.

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